Due to economies of scale as well as shorter value chains,
substitute products will not only reach price parity with
conventional foods in the long run, but can even be
produced and thus sold at a lower price (photo: Pixabay) Multi-million investment program
Price-sensitive buying
The clear ecological and societal advantages of in-vitro meat and
dairy products are, however, not a sufficient condition for their
market success. In all its clarity, this is reflected in the phenomenon
that, on the one hand, consumers regularly demand more sustainable
products, yet, on the other hand, display very price-sensitive
buying behavior. This phenomenon provides the most powerful
argument in favor of meat and dairy products from the bioreactor:
Due to economies of scale and shorter value chains, the products
are likely to not only reach price parity with but also be cheaper
than the traditional products in the long-run. Once this point is
reached, it is reasonable to assume that the in-vitro technology
will push conventionally produced animal-based products into the
niche.
Overall, it can be expected that the emerging in-vitro technology
will create unprecedented pressure for change in the agri-food
industry. The amount of livestock will be significantly reduced,
which will not only require farmers but also all other players in upstream
and downstream value chains to rethink their current and
identify new business models. Given that change can be shaped
but not stopped, the players in the incumbent agri-food industry
thus seem to be well-advised to seriously consider the possibility
that the last decade of conventional production of animal-based
products might have already dawned.
BENEO
BENEO has announced a multi-million investment
program for the coming years to expand capacity for
its prebiotic chicory root fibre production sites in Pemuco,
Chile and Oreye, Belgium. The first step will
see more than €30m invested. The entire program
will ensure a significant capacity increase of more
than 40 percent of BENEO’s global chicory root fibre
production to meet rising customer demand and
drive further growth within the market. The work on
both production sites is beginning in 2022.
BENEO will invest €30m in capacity increase for
prebiotic products (photo: BENEO)
IDM ¦ Disruption
8 · January/February 2022 ¦ international-dairy.com
/international-dairy.com
